Keeping Brand Purpose Powerful In Economic Uncertainty

by Lizzie Hanner, Director of Strategy at Grady Britton, Certified B Corp

We’re all feeling the uncertainty that comes with an economic downturn. These days the state of the economy can make you dizzy, depending on which headlines you read. But one thing is for certain – whether we’re in a recession or not, the state of uncertainty is causing a shift in the choices brands are making when it comes to precious dollars spent.

Today, return on investment is king. And with rumors of recession, inflationary pressures, and mass layoffs, many organizations are cutting back on discretionary spending: CMOs are being asked to do more with less, resulting in budgets that are dedicated to traditional demand generation and conversion tactics.

With the increased uncertainty and pressure to deliver, CMOs may be looking to cut investment in what has been a heavy focus for so many brands over the past couple of years; brand purpose. And, while current economic conditions make it easy to understand the inclination to put this investment on the chopping block, done right it’s brand purpose that can help drive the bottom line in both the long term and the short term.

What do consumers value and need right now?

During recessions and economic downturns, consumers are in a ‘need’ mentality rather than a ‘want’ mentality; actively trading down, holding on to things longer, and scaling back. In this mindset, they’re scrutinizing the value they will receive from a brand, particularly when a brand is not offering the lowest price. This is a different kind of scrutiny than is typically placed on brand purpose. One that goes beyond backing up a brand’s statements with action, but also connecting purpose tangibly to customers needs in the moment. In short, customers are looking at purpose through a different lens – not only the ‘Is this doing right by the world?’ lens, but also the ‘What’s in it for me?’ lens.

During recessionary periods, consumers are more willing to buy from brands that offer the following tangible benefits:

1. Superior quality products

2. Products that directly support their long term goals

3. Brands that provide greater reward for their loyalty

When consumers are in this mindset, the question CMO’s should ask themselves isn’t “Should we continue to invest in brand purpose,?” but instead “Are we connecting our brand purpose to tangible benefits that consumers are seeking at this moment?”

Companies like Stumptown and Bob’s Red Mill are great examples of brands that place their purpose front and center in both tangible and meaningful ways.

Stumptown, a pioneer of the Direct Trade sourcing model with coffee producers, provides strong, stable prices and long-term relationships to producers, ensuring their ability to invest in the future of their families, farms, and business. This isn’t just an effort to do better by the thousands of people who produce their coffee; these long-lasting partnerships translate into a better tasting cup of coffee than you can buy anywhere else.

Bob’s Red Mill is a company known for taking care of its people, with a longstanding history of giving back to communities. Rather than sell to the highest bidder, the business was turned over to its employees. This commitment to taking care of folks also ensures they can stay focused on their commitment to providing healthy foods to the world. For a customer, this equates to hundreds of products in numerous categories that people can depend on to support their wholesome lifestyle day in, day out.

In a lot of ways, recessions underscore that brand purpose matters a lot. Consumers still want to choose companies who are driven by shared purpose and values that impact the world around them, but they also want to feel that impact in their own lives. So, rather than shift focus from purpose to product, the real power lies in pulling purpose through your product – giving customers the value they seek to better drive the bottom line, and making your limited marketing dollars pull double duty.

Lizzie Hanner is Director of Strategy at Portland-based Grady Britton. With a never-ending curiosity in consumers, culture, and categories, Lizzie helps businesses solve problems that drive the bottom line while providing value and impact for the people and communities they serve. She’s spent over 15 years leading brand, campaign, and content strategies across agencies like Wieden & Kennedy, Anomaly, and AKQA, as well as in-house for global non-profit Mercy Corps. She can be reached at [email protected].